Tam Jai International Co., Ltd. (2217) AI Stock Analysis

• Market Cap: HK$1.93B
• Dividend Yield: 3.75%
• Average Volume (3M): 2.17M
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.67
• Revenue Growth: 1.63%
• EPS Growth: -47.80%
• Country: HK
• Employees: 3,522
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Restaurants
• EPS (TTM): 0.03
• Shares Outstanding: 1,346,779,900
• 10 Day Avg. Volume: 1,873,900
• 30 Day Avg. Volume: 2,173,466
• PEG Ratio: -1.16
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.79
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ―

Tam Jai International Co., Ltd. has a solid financial foundation with steady revenue growth and effective cash flow management, but profitability margins are under pressure. The technical analysis suggests strong upward momentum, enhancing the stock's appeal. However, the high P/E ratio indicates a premium valuation, partially offset by a generous dividend yield. Overall, the stock appears attractive but requires careful monitoring of profitability trends.

Tam Jai International Co., Ltd. Business Overview & Revenue Model

Company Description

Tam Jai International Co., Ltd. (2217) is a prominent player in the casual dining sector, focusing on the Asian-inspired noodle restaurant market. The company operates a chain of popular eateries known for their customizable noodle dishes, which cater to diverse taste preferences by allowing customers to choose from a wide array of ingredients and flavors. With a strong presence in its home market, it has successfully expanded its brand and continues to attract a loyal customer base through its unique dining experience.

How the Company Makes Money

Tam Jai International Co., Ltd. generates revenue primarily through the operation of its noodle restaurant chain. The company's business model revolves around the sale of customizable noodle meals, beverages, and related menu items to dine-in and takeout customers. Key revenue streams include direct sales from its restaurants and, potentially, franchising fees if applicable. The company's earnings are bolstered by strategic location selection, marketing efforts, and maintaining high food quality standards, which help in driving customer traffic and repeat business. Additionally, partnerships with suppliers for cost-effective ingredient sourcing and potential collaborations for brand promotions may also contribute to its financial performance.

Tam Jai International Co., Ltd. Financial Statement Overview

Summary

Tam Jai International Co., Ltd. shows steady revenue growth but faces challenges in maintaining profitability margins. The balance sheet is robust with moderate leverage and strong equity. Cash flow management is effective, generating healthy free cash flow, despite a decline in operating cash flow.

Income Statement

Tam Jai International Co., Ltd. demonstrated a steady revenue growth with a compound annual growth rate (CAGR) over the past years, with the latest annual increase of 5.93%. The gross profit margin for the latest year was 20.49%, reflecting a decline compared to the previous year. The net profit margin decreased from 5.43% to 4.32%, indicating pressure on profitability. Although the EBIT margin slightly improved to 4.52%, the EBITDA margin reduced to 26.39%, suggesting increased operating costs. Overall, the company shows stable revenue growth but faces challenges in maintaining its profitability margins.

Balance Sheet

The company maintains a healthy equity position with a debt-to-equity ratio of 0.54, indicating a moderate level of debt compared to its equity. The equity ratio stands at 56.61%, demonstrating a solid asset base funded by equity. However, the return on equity (ROE) decreased to 7.98%, indicating reduced profitability from its equity investments. The balance sheet reflects a stable financial structure but highlights potential risks in profitability and leverage.

Cash Flow

Operating cash flow was strong at HKD 623.61 million, although it showed a decrease from the previous year. Free cash flow increased slightly to HKD 557.25 million, reflecting effective management of capital expenditures. The free cash flow to net income ratio was impressive at 4.70, indicating robust cash generation relative to net income. The company demonstrates strong cash flow management, but the decline in operating cash flow warrants attention.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
2.76B	2.75B	2.59B	2.28B	1.79B	1.69B
	Gross Profit
1.06B	1.25B	1.97B	1.76B	1.38B	1.31B
	EBIT
439.65M	207.48M	120.93M	219.47M	174.18M	239.01M
	EBITDA
181.78M	725.14M	817.24M	706.76M	710.33M	559.93M
	Net Income Common Stockholders
73.09M	118.65M	140.95M	202.96M	287.79M	190.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.35B	1.35B	1.38B	1.37B	460.85M	301.36M
	Total Assets
2.62B	2.62B	2.68B	2.57B	1.40B	1.09B
	Total Debt
803.45M	803.45M	787.80M	708.11M	581.40M	513.00M
	Net Debt
-548.07M	-548.07M	-587.85M	-657.13M	120.55M	211.64M
	Total Liabilities
1.14B	1.14B	1.13B	1.02B	859.51M	715.42M
	Stockholders Equity
1.49B	1.49B	1.54B	1.55B	545.47M	376.55M
Cash Flow		Free Cash Flow
538.15M	557.25M	553.48M	481.28M	585.46M	433.86M
	Operating Cash Flow
605.07M	623.61M	716.38M	613.28M	707.32M	527.50M
	Investing Cash Flow
-20.12M	-22.27M	-145.21M	-130.16M	-120.54M	-91.12M
	Financing Cash Flow
-578.15M	-625.46M	-560.76M	421.26M	-427.29M	-441.46M

Tam Jai International Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.43
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2217, the sentiment is Neutral. The current price of 1.43 is below the 20-day moving average (MA) of 1.47, below the 50-day MA of 1.47, and above the 200-day MA of 1.07, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 41.20 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2217.

Tam Jai International Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1530	76 Outperform	HK$56.13B	24.91	14.19%	1.13%	14.36%	33.22%
2217	74 Outperform	HK$1.93B	24.20	5.40%	3.75%	1.63%	-47.80%
3662	67 Neutral	HK$377.65M	3.62	8.37%	5.52%	-14.98%	-39.71%
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
1181	53 Neutral	HK$184.00M	53.14	-8.51%	8.47%	-10.93%	-143.61%
6828	51 Neutral	HK$909.44M	10.81	6.29%	―	-21.48%	-7.50%

Tam Jai International Co., Ltd. Corporate Events

Tam Jai International Updates on Securities Amid Privatization Proposal

Tam Jai International Co., Ltd. announced updates regarding its securities in the context of a proposed privatization by Toridoll Holding Limited. The announcement detailed the lapse of certain share options and the current status of the company’s securities, emphasizing the need for associates to disclose their dealings under the Takeovers Code. This development is significant as it impacts the company’s market presence and regulatory compliance during the offer period.

Tam Jai International Issues Profit Warning Amid Market Challenges

Tam Jai International Co., Ltd. has issued a profit warning, anticipating a 30% to 35% decrease in profit for the year ending March 2025 compared to the previous year. The decline is attributed to a competitive market environment in Hong Kong, increased costs from promotions and delivery services, and challenges in Mainland China and Singapore, including weak consumer sentiment and intense competition. The company has responded by downsizing operations in these regions to preserve financial strength, though this has led to significant one-off expenses.

Tam Jai International Schedules Board Meeting to Approve Annual Results

Tam Jai International Co., Ltd. has announced that its Board of Directors will meet on May 9, 2025, to discuss and approve the company’s annual results for the fiscal year ending March 31, 2025. The meeting will also consider the recommendation for the payment of a final dividend, which could impact the company’s financial strategy and shareholder returns.

Tam Jai International Updates on Securities Amid Privatization Proposal

Tam Jai International Co., Ltd. has announced an update regarding its securities in light of a proposed privatization by Toridoll Holding Limited. The company is undergoing a scheme of arrangement, which includes the potential withdrawal of its shares from the stock exchange. Recent developments include the issuance of new shares and the lapse of some share options, impacting the total number of relevant securities. Stakeholders, particularly associates and shareholders, are reminded of their disclosure obligations during this offer period.

Tam Jai International Co., Ltd. Announces Privatization Proposal and Delisting Plan

Tam Jai International Co., Ltd., a company incorporated in Hong Kong, is undergoing a proposed privatization by Toridoll Holding Limited through a scheme of arrangement under the Companies Ordinance. This move includes the proposed withdrawal of the company’s shares from listing. The process is currently in preparation stages, with a Directions Hearing scheduled for May 22, 2025, and the Scheme Document dispatch extended to June 6, 2025. The proposal’s implementation is contingent upon certain conditions, including court approval, which have yet to be fulfilled or waived.

Tam Jai International Announces Delay in Privatization Scheme Document Dispatch

Tam Jai International Co., Ltd., in collaboration with Toridoll Holding Limited, announced a delay in the dispatch of the Scheme Document related to the proposed privatization of the company and withdrawal of its shares from listing. The delay is due to the need for additional time to prepare the necessary information and schedule a Directions Hearing. The Executive has indicated a willingness to extend the deadline to June 6, 2025. Stakeholders are advised to exercise caution as the proposal’s implementation remains subject to certain conditions.

Tam Jai International Announces Privatization Proposal

Tam Jai International Co., Ltd. announced a proposal for its privatization through a scheme of arrangement under Section 673 of the Companies Ordinance, which includes the cancellation of shares and subsequent withdrawal of its listing on the Stock Exchange. This move, spearheaded by Toridoll Holding Limited, will result in the offeror holding 100% of the company’s issued share capital, potentially impacting current shareholders and stakeholders by altering the company’s public market dynamics.

Tam Jai International Reports on Toridoll Holdings’ Financial Performance

Tam Jai International Co., Ltd. announced the unaudited financial results of its controlling shareholder, Toridoll Holdings Corporation, for the nine months ending December 2024. While the overseas segment of Toridoll Japan saw an increase in revenue to JPY 78,510 million, the business profit decreased to JPY 1,932 million. The Group’s revenue slightly increased to HK$ 2,125 million, but profit after tax declined to HK$ 59 million. The financial results highlight the differences in reporting standards between Toridoll Japan and Tam Jai International, potentially impacting stakeholders’ financial assessments.